Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 23, 2018 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CTS | |
Entity Registrant Name | CTS CORP | |
Entity Central Index Key | 26,058 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,087,043 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 118,021 | $ 105,686 | $ 231,551 | $ 205,840 |
Cost of goods sold | 76,208 | 69,892 | 151,305 | 135,822 |
Gross Margin | 41,813 | 35,794 | 80,246 | 70,018 |
Selling, general and administrative expenses | 19,621 | 15,808 | 36,993 | 31,056 |
Research and development expenses | 6,476 | 6,049 | 12,983 | 12,052 |
Restructuring charges | 1,172 | 729 | 2,367 | 1,507 |
Operating earnings | 14,544 | 13,208 | 27,903 | 25,403 |
Other income (expense): | ||||
Interest expense | (571) | (752) | (1,112) | (1,436) |
Interest income | 472 | 298 | 954 | 551 |
Other income, net | (2,874) | 1,170 | (870) | 1,631 |
Total other income | (2,973) | 716 | (1,028) | 746 |
Earnings before income taxes | 11,571 | 13,924 | 26,875 | 26,149 |
Income tax expense | 4,362 | 3,958 | 8,118 | 7,699 |
Net earnings | $ 7,209 | $ 9,966 | $ 18,757 | $ 18,450 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.22 | $ 0.30 | $ 0.57 | $ 0.56 |
Diluted (in dollars per share) | $ 0.21 | $ 0.30 | $ 0.56 | $ 0.55 |
Basic weighted - average common shares outstanding (in shares): | 33,051 | 32,890 | 33,014 | 32,846 |
Effect of dilutive securities (in shares) | 513 | 461 | 513 | 493 |
Diluted weighted - average common shares outstanding (in shares) | 33,564 | 33,351 | 33,527 | 33,339 |
Cash dividends declared per share (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.08 | $ 0.08 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Earnings - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 7,209 | $ 9,966 | $ 18,757 | $ 18,450 |
Other comprehensive income: | ||||
Changes in fair market value of derivatives, net of tax | 67 | (152) | 874 | 608 |
Changes in unrealized pension cost, net of tax | 1,249 | 942 | 2,356 | 1,758 |
Cumulative translation adjustment, net of tax | (375) | 200 | (132) | 288 |
Other comprehensive income | 941 | 990 | 3,098 | 2,654 |
Comprehensive earnings | $ 8,150 | $ 10,956 | $ 21,855 | $ 21,104 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 102,861 | $ 113,572 |
Accounts receivable, net | 75,597 | 70,584 |
Inventories, net | 41,671 | 36,596 |
Other current assets | 11,931 | 12,857 |
Total current assets | 232,060 | 233,609 |
Property, plant and equipment, net | 93,630 | 88,247 |
Other Assets | ||
Prepaid pension asset | 59,938 | 57,050 |
Goodwill | 71,057 | 71,057 |
Other intangible assets, net | 63,557 | 66,943 |
Deferred income taxes | 20,188 | 20,694 |
Other | 2,123 | 2,096 |
Total other assets | 216,863 | 217,840 |
Total Assets | 542,553 | 539,696 |
Current Liabilities | ||
Accounts payable | 51,652 | 49,201 |
Accrued payroll and benefits | 9,689 | 11,867 |
Accrued liabilities | 43,805 | 41,344 |
Total current liabilities | 105,146 | 102,412 |
Long-term debt | 57,000 | 76,300 |
Long-term pension obligations | 6,998 | 7,201 |
Deferred Tax Liabilities, Net, Noncurrent | 3,572 | 3,802 |
Other long-term obligations | 6,077 | 6,176 |
Total Liabilities | 178,793 | 195,891 |
Shareholders’ Equity | ||
Common stock | 306,570 | 304,777 |
Additional contributed capital | 40,034 | 41,084 |
Retained earnings | 436,274 | 420,160 |
Accumulated other comprehensive loss | (75,862) | (78,960) |
Total shareholders’ equity before treasury stock | 707,016 | 687,061 |
Treasury stock | (343,256) | (343,256) |
Total shareholders’ equity | 363,760 | 343,805 |
Total Liabilities and Shareholders’ Equity | $ 542,553 | $ 539,696 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 18,757 | $ 18,450 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 10,961 | 9,673 |
Pension and Other Postretirement Expense (Income) | 213 | (893) |
Stock-based compensation | 2,186 | 1,687 |
Deferred income taxes | (648) | 4,497 |
Gain (Loss) on Disposition of Assets | (2) | (1) |
Gain on foreign currency hedges, net of cash | (76) | 73 |
Changes in assets and liabilities: | ||
Accounts receivable | (5,452) | (1,950) |
Inventories | (5,275) | (4,737) |
Other assets | 1,280 | (76) |
Accounts payable | 4,779 | 1,616 |
Accrued payroll and benefits | (2,028) | (4,735) |
Accrued expenses | 247 | (1,944) |
Income taxes payable | 3,034 | (347) |
Other liabilities | (101) | 2,115 |
Pension and other post-retirement plans | (158) | (159) |
Net cash provided by operating activities | 27,721 | 23,271 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (14,910) | (9,110) |
Proceeds from sale of assets | 1 | 1 |
Payments for acquisitions, net of cash acquired | 0 | (19,265) |
Net cash used in investing activities | (14,909) | (28,374) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of long-term debt | (749,200) | (790,600) |
Proceeds from borrowings of long-term debt | 729,900 | 794,300 |
Dividends paid | (2,638) | (2,624) |
Net cash (used in) provided by financing activities | (23,367) | (493) |
Payments Related to Tax Withholding for Share-based Compensation | (1,429) | (1,569) |
Effect of exchange rate changes on cash and cash equivalents | (156) | (395) |
Net increase in cash and cash equivalents | (10,711) | (5,991) |
Cash and cash equivalents at beginning of period | 113,572 | 113,805 |
Cash and cash equivalents at end of period | 102,861 | 107,814 |
Supplemental cash flow information: | ||
Cash paid for interest | 995 | 1,053 |
Cash paid for income taxes, net | $ 3,724 | $ 3,515 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS” "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2017 . The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Changes in Accounting Principles Beginning in January 2018, CTS adopted the provisions of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)" under the modified retrospective method, which requires a cumulative effect adjustment to the opening balance of retained earnings on the date of adoption. This approach was applied to contracts not completed as of December 31, 2017. At date of adoption, there was no significant change to our past revenue recognition practices and therefore no adjustment to the opening balance of retained earnings was required. Beginning in April 2018, CTS elected to adopt the provisions of ASU No. 2017-12 "Derivatives and Hedging (Topic 815): Target Improvements to Accounting for Hedging Activities" under the modified retrospective method, which requires a cumulative effect adjustment to the opening balance of retained earnings. Prior to adoption, the company measured hedge effectiveness for all cash flow hedges quarterly and recognized any ineffectiveness in earnings in the current period. Upon adoption the company elected to review hedge effectiveness qualitatively as described further in Note 12 - Derivative Financial Instruments. At the date of adoption there was no significant hedge ineffectiveness recorded in earnings for hedged assets existing as of January 1, 2018, and therefore no adjustment to the opening balance of retained earnings was required. Subsequent Events We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the date the consolidated financial statements are issued. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle: • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met We recognize revenue when the performance obligations specified in our contracts have been satisfied, after considering the impact of variable consideration and other factors that may affect the transaction price. Our contracts normally contain a single performance obligation that is fulfilled on the date of delivery based on shipping terms stipulated in the contract. We usually expect payment within 30 to 90 days from the shipping date, depending on our terms with the customer. None of our contracts as of June 30, 2018 , contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method based on an analysis of historical experience and current facts and circumstances, which requires significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Contract Assets and Liabilities Contract assets and liabilities included in our Condensed Consolidated Balance Sheets are as follows: As of June 30, December 31, 2018 2017 Contract Assets Prepaid rebates included in Other current assets $ 64 $ 52 Prepaid rebates included in Other assets 482 465 Total Contract Assets $ 546 $ 517 Contract Liabilities Customer discounts and price concessions included in Accrued liabilities $ (2,323 ) $ (1,133 ) Customer rights of return included in Accrued liabilities (341 ) (462 ) Total Contract Liabilities $ (2,664 ) $ (1,595 ) During the three and six months ended June 30, 2018 , we recognized a decrease of revenues of $ 46 and an increase in revenues of $ 86 , respectively, that were included in contract liabilities at the beginning of the period. The increase in contract liabilities as of June 30, 2018 is primarily due to net increases in estimated future discounts and price concessions, offset by net settlements of products sold with rights of return. Disaggregated Revenue The following table presents revenues disaggregated by the major markets we serve: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Aero & Defense $ 6,024 $ 4,675 $ 11,127 $ 9,332 Industrial 22,773 19,214 43,129 36,326 Medical 9,793 7,474 19,034 14,288 Telecom & IT 5,525 5,602 10,050 10,780 Transportation 73,906 68,721 148,211 135,114 Total $ 118,021 $ 105,686 $ 231,551 $ 205,840 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The components of accounts receivable are as follows: As of June 30, December 31, 2018 2017 Accounts receivable, gross $ 76,032 $ 70,941 Less: Allowance for doubtful accounts (435 ) (357 ) Accounts receivable, net $ 75,597 $ 70,584 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: As of June 30, December 31, 2018 2017 Finished goods $ 11,778 $ 9,203 Work-in-process 12,008 12,065 Raw materials 23,529 21,150 Less: Inventory reserves (5,644 ) (5,822 ) Inventories, net $ 41,671 $ 36,596 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is comprised of the following: As of June 30, December 31, 2018 2017 Land $ 1,137 $ 1,130 Buildings and improvements 68,778 64,201 Machinery and equipment 225,843 223,650 Less: Accumulated depreciation (202,128 ) (200,734 ) Property, plant and equipment, net $ 93,630 $ 88,247 Depreciation expense for the three months ended June 30, 2018 $ 3,774 Depreciation expense for the six months ended June 30, 2018 $ 7,537 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Pension Plans Net pension expense (income) for our domestic and foreign plans was as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Net pension expense (income) $ 78 $ (491 ) $ 157 $ (924 ) The components of net pension expense (income) for our domestic and foreign plans include the following: Domestic Pension Plans Foreign Pension Plans Three Months Ended Three Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service cost $ — $ — $ 11 $ 12 Interest cost 1,781 2,068 11 9 Expected return on plan assets (1) (3,225 ) (4,060 ) (6 ) (5 ) Amortization of loss 1,466 1,446 40 39 Expense (income), net $ 22 $ (546 ) $ 56 $ 55 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service cost $ — $ — $ 22 $ 24 Interest cost 3,562 4,136 22 17 Expected return on plan assets (1) (6,450 ) (8,121 ) (13 ) (10 ) Amortization of loss 2,932 2,892 82 77 Other cost due to retirement — 61 — — Expense (income), net $ 44 $ (1,032 ) $ 113 $ 108 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Other Post-retirement Benefit Plan Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service cost $ — $ — $ 1 $ 1 Interest cost 39 40 78 80 Amortization of gain (11 ) (25 ) (23 ) (50 ) Expense, net $ 28 $ 15 $ 56 $ 31 |
Other Intangible Assets
Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets Intangible assets consist of the following components: As of June 30, 2018 Gross Accumulated Net Amount Customer lists/relationships $ 64,323 $ (35,387 ) $ 28,936 Patents 10,319 (10,319 ) — Technology and other intangibles 44,460 (12,039 ) 32,421 In process research and development 2,200 — 2,200 Other intangible assets, net $ 121,302 $ (57,745 ) $ 63,557 Amortization expense for the three months ended June 30, 2018 $ 1,704 Amortization expense for the six months ended June 30, 2018 $ 3,424 As of December 31, 2017 Gross Accumulated Net Amount Customer lists/relationships $ 64,323 $ (33,685 ) $ 30,638 Patents 10,319 (10,319 ) — Technology and other intangibles 44,460 (10,355 ) 34,105 In process research and development 2,200 — 2,200 Other intangible assets, net $ 121,302 $ (54,359 ) $ 66,943 Amortization expense for the three months ended June 30, 2017 $ 1,613 Amortization expense for the three months ended June 30, 2017 $ 3,149 Remaining amortization expense for other intangible assets as of June 30, 2018 is as follows: Amortization 2018 $ 3,377 2019 6,754 2020 6,624 2021 6,467 2022 6,230 Thereafter 34,105 Total amortization expense $ 63,557 |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | Costs Associated with Exit and Restructuring Activities Costs associated with exit and restructuring activities are recorded in the Condensed Consolidated Statement of Earnings as a separate component of Operating earnings. Total restructuring charges, all related to the June 2016 Plan described below, were as follows: Three Months Ended June 30, 2018 June 30, 2017 Restructuring charges $ 1,172 $ 729 Six Months Ended June 30, 2018 June 30, 2017 Restructuring charges $ 2,367 $ 1,507 In June 2016, we announced plans to restructure operations by phasing out production at our Elkhart facility by the end of 2018 and transitioning it into a research and development center supporting our global operations ("June 2016 Plan"). Additional organizational changes were also implemented in various other locations. During the third quarter of 2017, we revised the June 2016 Plan. The amendment added an additional $1,100 in planned costs related to the relocation of our corporate headquarters in Lisle, IL and our plant in Bolingbrook, IL, both of which will be consolidated into a single facility. The total cost of the plan is expected to be approximately $13,400 . The total restructuring liability related to severance and other one-time benefit arrangements under the June 2016 Plan was $1,223 at June 30, 2018 , and $ 1,460 at December 31, 2017 . Additional costs related to production line movements, equipment charges, and other costs will be expensed as incurred. The following table displays the planned restructuring charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through June 30, 2018 : Actual costs Planned incurred through June 2016 Plan Costs June 30, 2018 Workforce reduction $ 3,075 $ 3,211 Building and equipment relocation 9,025 5,518 Other charges 1,300 825 Total restructuring charges $ 13,400 $ 9,554 In April 2014, we announced plans to restructure our operations and consolidate our Canadian operations into other existing facilities as part of our overall plan to simplify our business model and rationalize our global footprint (“April 2014 Plan”). These restructuring actions were completed in 2015. The remaining restructuring liability related to the April 2014 Plan was $433 at June 30, 2018 , and $ 453 at December 31, 2017 . The following table displays the restructuring liability activity for all plans for the six months ended June 30, 2018 : Restructuring liability at January 1, 2018 $ 1,913 Restructuring charges 2,367 Cost paid (2,603 ) Other activity (1) (21 ) Restructuring liability at June 30, 2018 $ 1,656 (1) Other activity includes the effects of currency translation and other charges that do not flow through restructuring expense. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities are as follows: As of June 30, December 31, 2018 2017 Accrued product related costs $ 4,716 $ 5,297 Accrued income taxes 8,512 5,475 Accrued property and other taxes 2,080 997 Accrued professional fees 3,055 2,228 Contract liabilities 2,664 1,595 Dividends payable 1,323 1,318 Remediation reserves 14,570 17,067 Other accrued liabilities 6,885 7,367 Total accrued liabilities $ 43,805 $ 41,344 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently and formerly owned or operated by us. Some sites, such as Asheville, North Carolina and Mountain View, California, are designated National Priorities List sites under the U.S. Environmental Protection Agency’s Superfund program. We reserve for probable remediation activities and for claims and proceedings against us with respect to other environmental matters. We record reserves on an undiscounted basis. In the opinion of management, based upon presently available information relating to such matters, adequate provision for probable and estimable costs have been recorded. We do not have any known environmental obligations where a loss is probable or reasonably possible of occurring for which we do not have a reserve, nor do we have any amounts for which we have not reserved because the amount of the loss cannot be reasonably estimated. Due to the inherent nature of environmental obligations, we cannot provide assurance that our ultimate environmental liability will not materially exceed the amount of its current reserve. Our reserve and disclosures will be adjusted accordingly if additional information becomes available in the future. A roll forward of remediation reserves included in accrued liabilities on the balance sheet is comprised of the following: As of June 30, 2018 December 31, 2017 Balance at beginning of period $ 17,067 $ 18,176 Remediation expense 1,048 307 Net remediation payments (3,545 ) (1,416 ) Balance at end of the period $ 14,570 $ 17,067 Unrelated to the environmental claims described above, certain other claims are pending against us with respect to matters arising in the ordinary conduct of our business. Although the ultimate outcome of any potential litigation resulting from these claims cannot be predicted with certainty, and some may be disposed of unfavorably to us, we believe that adequate provision for anticipated costs have been established based upon all presently available information. Except as noted herein, we do not believe we have any pending loss contingencies that are probable or reasonably possible of having a material impact on our consolidated financial position, results of operations, or cash flows. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt was comprised of the following: As of June 30, December 31, 2018 2017 Total credit facility $ 300,000 $ 300,000 Balance outstanding $ 57,000 $ 76,300 Standby letters of credit $ 1,940 $ 2,065 Amount available $ 241,060 $ 221,635 Weighted-average interest rate 3.01 % 2.30 % Commitment fee percentage per annum 0.25 % 0.25 % On August 10, 2015, we entered into a five -year credit agreement (“Revolving Credit Facility”) with a group of banks in order to support our financing needs. The Revolving Credit Facility originally provided for a credit line of $200,000 . On May 23, 2016, we requested and received a $100,000 increase in the aggregate revolving credit commitments under the existing credit agreement, which increased the credit line from $200,000 to $300,000 . The Revolving Credit Facility includes a swing line sublimit of $15,000 and a letter of credit sublimit of $10,000 . Borrowings under the Revolving Credit Facility bear interest, at our option, at the base rate plus the applicable margin for base rate loans or London Interbank Offered Rate ("LIBOR") plus the applicable margin for LIBOR loans. We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.20% to 0.40% based on the our total leverage ratio. The Revolving Credit Facility requires, among other things, that we comply with a maximum total leverage ratio and a minimum fixed charge coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the Revolving Credit Facility. We were in compliance with all debt covenants at June 30, 2018 . The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor certifications, and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the Revolving Credit Facility contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments. Interest rates on the Revolving Credit Facility fluctuate based upon the LIBOR and the Company’s quarterly total leverage ratio. We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt. These costs are included in interest expense in our Condensed Consolidated Statement of Earnings. Amortization expense was approximately $46 for both the three months ended June 30, 2018 and June 30, 2017 , respectively, and approximately $ 93 for both the six months ended June 30, 2018 and June 30, 2017 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts and interest rate swaps to manage our exposure to these risks. The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements. The effective portion of derivative gains and losses are recorded in accumulated other comprehensive (loss) income until the hedged transaction affects earnings upon settlement, at which time they are reclassified to cost of goods sold or net sales. If it is probable that an anticipated hedged transaction will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from accumulated other comprehensive (loss) income to other income (expense). On April 1, 2018, the company adopted the provisions of ASU 2017-12 "Derivatives and Hedging (Topic 815): Target Improvements to Accounting for Hedging Activities". As a result, hedge effectiveness was reviewed qualitatively by verifying that the critical terms of the hedging instrument and the forecasted transaction continue to match, and that there have been no adverse developments that have increased the risk that the counterparty will default. No recognition of ineffectiveness was recorded in our Condensed Consolidated Statement of Earnings for the three months ended June 30, 2018. Foreign Currency Hedges In January of 2016, we began using forward contracts to mitigate currency risk related to a portion of our forecasted foreign currency revenues and costs. The currency forward contracts are designed as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheets at fair value. We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At June 30, 2018 , we had a net unrealized gain of $ 59 in accumulated other comprehensive (loss) income, of which $ 5 is expected to be reclassified to income within the next 12 months. At June 30, 2017 we had a net unrealized gain of $ 428 in accumulated other comprehensive (loss) income. The notional amount of foreign currency forward contracts outstanding was $21.1 million at June 30, 2018 . Interest Rate Swaps We use interest rate swaps to convert the revolving credit facility’s variable rate of interest into a fixed rate. In the second quarter of 2012, CTS entered into four separate interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, we entered into four additional interest rate swap agreements to fix interest rates on $25,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2016, we entered into three additional interest rate swap agreements to fix interest rates on $50,000 of long-term debt for the periods August 2017 to August 2020. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in other comprehensive (loss) income. The estimated net amount of the existing gains that are reported in accumulated other comprehensive (loss) income that are expected to be reclassified into earnings within the next twelve months is approximately $524 . The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2018 , are shown in the following table: As of June 30, December 31, 2018 2017 Interest rate swaps reported in Other current assets $ 524 $ 278 Interest rate swaps reported in Other assets $ 835 $ 693 Foreign currency hedges reported in Other current assets $ 76 $ — Foreign currency hedges reported in Accrued liabilities $ — $ (742 ) The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 (Balance Sheet, Offsetting). On a gross basis, there were foreign currency derivative assets of $301 and foreign currency derivative liabilities of $225 . The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Foreign Exchange Contracts: Gain (loss) recognized in Net sales $ 21 $ (57 ) $ (37 ) $ (59 ) Gain (loss) recognized in Cost of goods sold 32 58 140 (86 ) (Loss) gain recognized in Selling, general and administrative expense (4 ) 13 (5 ) 10 Loss recognized in Other income — (1 ) (1 ) (9 ) Interest Rate Swaps: Benefit recorded in Interest expense $ 105 $ — $ 170 $ — Total gain (loss) $ 154 $ 13 $ 267 $ (144 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Shareholders’ equity includes certain items classified as accumulated other comprehensive (loss) income (“AOCI”) in the Condensed Consolidated Balance Sheets, including: Unrealized gains (losses) on hedges relate to interest rate swaps to convert the revolving credit facility's variable rate of interest into a fixed rate and foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 12 - Derivative Financial Instruments and Note 16 – Fair Value Measurements. Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income / (expense). Further information related to our pension obligations is included in Note 6 – Retirement Plans. Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income. Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction losses for the three and six months ended June 30, 2018 were $2,194 and $918 , respectively and transaction gains for the three and six months ended June 30, 2017 were $ 1,162 and $ 1,557 , respectively, which have been included in other income (expense) in the Condensed Consolidated Statement of Earnings. The components of accumulated other comprehensive (loss) income for the three months ended June 30, 2018 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2018 in OCI to Income 2018 Changes in fair market value of hedges: Gross $ 1,332 $ 240 $ (154 ) $ 1,418 Income tax (benefit) expense (341 ) (54 ) 35 (360 ) Net 991 186 (119 ) 1,058 Changes in unrealized pension cost: Gross (128,672 ) — 1,617 (127,055 ) Income tax expense (benefit) 52,520 — (368 ) 52,152 Net (76,152 ) — 1,249 (74,903 ) Cumulative translation adjustment: Gross (1,747 ) (368 ) — (2,115 ) Income tax expense (benefit) 105 (7 ) — 98 Net (1,642 ) (375 ) — (2,017 ) Total accumulated other comprehensive (loss) income $ (76,803 ) $ (189 ) $ 1,130 $ (75,862 ) The components of accumulated other comprehensive (loss) income for the three months ended June 30, 2017 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2017 in OCI to Income 2017 Changes in fair market value of hedges: Gross $ 1,308 $ (223 ) $ (15 ) $ 1,070 Income tax (benefit) expense (474 ) 81 5 (388 ) Net 834 (142 ) (10 ) 682 Changes in unrealized pension cost: Gross (150,322 ) — 1,466 (148,856 ) Income tax expense (benefit) 60,192 — (524 ) 59,668 Net (90,130 ) — 942 (89,188 ) Cumulative translation adjustment: Gross (2,328 ) 196 — (2,132 ) Income tax expense 94 4 — 98 Net (2,234 ) 200 — (2,034 ) Total accumulated other comprehensive (loss) income $ (91,530 ) $ 58 $ 932 $ (90,540 ) The components of accumulated other comprehensive (loss) income for the six months ended June 30, 2018 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2017 in OCI to Income 2018 Changes in fair market value of hedges: Gross $ 289 $ 1,397 $ (268 ) $ 1,418 Income tax (benefit) expense (105 ) (315 ) 60 (360 ) Net 184 1,082 (208 ) 1,058 Changes in unrealized pension cost: Gross (130,096 ) — 3,041 (127,055 ) Income tax expense (benefit) 52,837 — (685 ) 52,152 Net (77,259 ) — 2,356 (74,903 ) Cumulative translation adjustment: Gross (1,985 ) (130 ) — (2,115 ) Income tax expense (benefit) 100 (2 ) — 98 Net (1,885 ) (132 ) — (2,017 ) Total accumulated other comprehensive (loss) income $ (78,960 ) $ 950 $ 2,148 $ (75,862 ) The components of accumulated other comprehensive (loss) income for the six months ended June 30, 2017 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2016 in OCI to Income 2017 Changes in fair market value of hedges: Gross $ 116 $ 819 $ 135 $ 1,070 Income tax benefit (42 ) (297 ) (49 ) (388 ) Net 74 522 86 682 Changes in unrealized pension cost: Gross (151,618 ) — 2,762 (148,856 ) Income tax expense (benefit) 60,672 — (1,004 ) 59,668 Net (90,946 ) — 1,758 (89,188 ) Cumulative translation adjustment: Gross (2,414 ) 282 — (2,132 ) Income tax expense 92 6 — 98 Net (2,322 ) 288 — (2,034 ) Total accumulated other comprehensive (loss) income $ (93,194 ) $ 810 $ 1,844 $ (90,540 ) |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share count and par value data related to shareholders’ equity are as follows: As of June 30, December 31, 2018 2017 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding — — Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 56,781,065 56,632,488 Shares outstanding 33,087,043 32,938,466 Treasury stock Shares held 23,694,022 23,694,022 No common stock repurchases were made during the six months ended June 30, 2018 . Through June 30, 2018 , we had purchased an aggregate of $7,446 under a board-authorized share repurchase plan allowing for up to $25,000 in stock repurchases. Approximately $17,554 is available for future purchases. A roll-forward of common shares outstanding is as follows: Six Months Ended June 30, June 30, 2018 2017 Balance at the beginning of the year 32,938,466 32,762,494 Repurchases — — Shares issued upon exercise of stock options — — Restricted share issuances 148,577 170,832 Balance at the end of the period 33,087,043 32,933,326 Certain potentially dilutive restricted stock units are excluded from diluted earning per share because they are anti-dilutive. The number of awards that were anti-dilutive at June 30, 2018 and June 30, 2017 were 72,658 and 122,511 , respectively. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | -Based Compensation At June 30, 2018 , we had five active stock-based compensation plans: the Nonemployee Directors’ Stock Retirement Plan (“Directors’ Plan”), the 2004 Omnibus Long-Term Incentive Plan (“2004 Plan”), the 2009 Omnibus Equity and Performance Incentive Plan (“2009 Plan”), the 2014 Performance & Incentive Plan (“2014 Plan”), and the 2018 Equity and Incentive Compensation Plan ("2018 Plan"). Future grants can only be made under the 2018 Plan. The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service-Based RSUs $ 563 $ 465 $ 1,018 $ 1,015 Performance-Based RSUs 643 297 1,153 680 Cash-settled RSUs 57 46 15 (8 ) Total $ 1,263 $ 808 $ 2,186 $ 1,687 Income tax benefit 285 304 494 634 Net $ 978 $ 504 $ 1,692 $ 1,053 The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average June 30, 2018 Period Service-Based RSUs $ 1,973 1.94 Performance-Based RSUs 3,326 1.64 Total $ 5,299 1.75 We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. The following table summarizes the status of these plans as of June 30, 2018 : 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Performance-based options outstanding — 285,000 — — — Maximum potential RSU and cash settled awards outstanding — 732,975 92,600 35,952 5,522 Maximum potential awards outstanding — 1,017,975 92,600 35,952 5,522 RSUs and cash settled awards vested and released — — — — — Awards available for grant 2,500,000 — — — — Stock Options We have no stock options exercisable or outstanding as of June 30, 2018 , other than the performance-based stock options described below. Performance-Based Stock Options During 2015 and 2016, the Compensation Committee of the Board of Directors of the Company (the “Committee”) granted a total of 350,000 performance-based stock option awards (“Performance-Based Option Awards”) for certain employees under the 2014 Plan, of which 285,000 remain outstanding after considering forfeitures. The Performance-Based Option Awards have an exercise price of $18.37 , a term of five years , and generally will become exercisable (provided the optionee remains employed by the Company or an affiliate) upon our attainment of at least $600,000 in revenues during any of our trailing four quarterly periods (as determined by the Committee) during the term. We have not recognized any expense on these Performance-Based Option Awards for the six -month periods ended June 30, 2018 and 2017 , since the revenue target was not deemed likely to be attained based on our current forecast. Service-Based Restricted Stock Units The following table summarizes the service-based RSU activity as of and for the six months ended June 30, 2018 : Units Weighted Outstanding at January 1, 2018 399,347 $ 14.60 Granted 74,222 26.31 Vested and released (130,301 ) 14.22 Forfeited (1,938 ) 20.86 Outstanding at June 30, 2018 341,330 $ 17.26 Releasable at June 30, 2018 194,674 $ 12.82 Performance and Market-Based Restricted Stock Units The following table summarizes the performance and market-based RSU activity as of and for the six months ended June 30, 2018 : Units Weighted Outstanding at January 1, 2018 271,305 $ 18.77 Granted 72,043 28.75 Attained by performance 18,600 17.66 Released (72,456 ) 18.66 Forfeited (21,700 ) 17.66 Outstanding at June 30, 2018 267,792 $ 21.44 Releasable at June 30, 2018 — $ — The following table summarizes each grant of performance awards outstanding at June 30, 2018 . Description Grant Date Vesting Year Vesting Dependency Target Units Outstanding Maximum Number of Units to be Granted 2016 - 2018 Performance RSUs February 16, 2016 2018 35% RTSR, 35% sales growth, 30% operating cash flow 92,840 185,680 2017 - 2019 Performance RSUs February 9, 2017 2019 35% RTSR, 35% sales growth, 30% operating cash flow 71,796 143,592 2017 - 2019 Performance RSUs February 9, 2017 2018 - 2020 Operating Income 27,113 27,113 2018 - 2020 Performance RSUs February 8, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 40,223 80,446 2018 - 2020 Performance RSUs February 16, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 31,820 63,640 Single Crystal Performance RSUs March 31, 2016 2018 Various 4,000 8,000 Cash-Settled Restricted Stock Units Cash-Settled RSUs entitle the holder to receive the cash equivalent of one share of common stock for each unit when the unit vests. These RSUs are issued to key employees residing in foreign locations as direct compensation. Generally, these RSUs vest over a three-year period. Cash-Settled RSUs are classified as liabilities and are remeasured at each reporting date until settled. At June 30, 2018 and December 31, 2017 we had 17,248 and 14,082 cash-settled RSUs outstanding, respectively. At June 30, 2018 and December 31, 2017, liabilities of $ 184 and $ 241 , respectively were included in Accrued liabilities on our Condensed Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use interest rate swaps to convert our Revolving Credit Facility’s variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. These derivative financial instruments are measured at fair value on a recurring basis. The table below summarizes our financial assets that were measured at fair value on a recurring basis at June 30, 2018 : Quoted Prices Asset in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable June 30, Instruments Inputs Inputs 2018 (Level 1) (Level 2) (Level 3) Interest rate swaps $ 1,359 $ — $ 1,359 $ — Foreign currency hedges $ 76 $ — $ 76 $ — The table below summarizes the financial assets (liabilities) that were measured at fair value on a recurring basis as of December 31, 2017 : Quoted Asset Prices (Liability) in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable December 31, Instruments Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Interest rate swaps $ 971 $ — $ 971 $ — Foreign currency hedges $ (742 ) $ — $ (742 ) $ — The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but that market is not active and therefore they are classified within Level 2 of the fair value hierarchy. The table below provides a reconciliation of the recurring financial assets (liabilities) for our derivative instruments: Foreign Interest Currency Total gains (losses) for the period: Rate Swaps Hedges Balance at January 1, 2017 $ 753 $ (601 ) Settled in cash — (132 ) Included in earnings — 38 Included in other comprehensive earnings 218 (47 ) Balance at December 31, 2017 $ 971 $ (742 ) Settled in cash — (21 ) Included in earnings (170 ) 97 Included in other comprehensive earnings 558 742 Balance at June 30, 2018 $ 1,359 $ 76 Our long-term debt consists of the Revolving Credit Facility which is recorded at its carrying value. There is a readily determinable market for our long-term debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the three and six -month periods ended June 30, 2018 and 2017 were: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Effective tax rate 37.7 % 28.4 % 30.2 % 29.4 % Our effective income tax rate was 37.7% and 28.4% in the second quarters of 2018 and 2017 , respectively. The increase in the effective tax rate for the three months ended June 30, 2018 , compared with the same period in 2017, was primarily attributed to tax expense of $1,703 related to a one-time cash distribution from Taiwan, offset by a reduction in our statutory tax rate as a result of the 2017 Tax and Jobs Act (the "Tax Act"). The tax rate in the second quarter of 2018 was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes, state taxes and foreign earnings that are taxed at higher rates. The tax rate in the second quarter of 2017 was lower than the U.S. statutory federal tax rate primarily due to lower foreign tax rates applicable on foreign earnings. Our effective income tax rate was 30.2% and 29.4% in the first half of 2018 and 2017, respectively. The increase in the effective tax rate for the six months ended June 30, 2018, compared with the same period in 2017, was primarily attributed to tax expense of $1,703 related to a one-time cash distribution from Taiwan, offset by the previously mentioned statutory tax rate reduction resulting from the Tax Act. The tax rate in the first half of 2018 was higher than the U.S. statutory federal tax rate primarily due to foreign withholding taxes, state taxes, and foreign earnings that are taxed at higher rates. The tax rate in the first half of 2017 was lower than the U.S. statutory federal tax rate primarily due to tax benefits recorded upon vesting of restricted stock units, a release of valuation allowances recorded against realizable foreign NOLs, and favorable tax rates on foreign earnings, offset by the impact of state taxes, tax expense for withholding taxes on the anticipated distribution of earnings in China, and other various permanent items. We recognized the income tax effects of the Tax Act in the audited consolidated financial statements included in our 2017 Annual Report on Form 10-K. Staff Accounting Bulletin No. 118 provides Securities and Exchange Commission staff guidance for the application of ASC Topic 740, Income Taxes, which allows for a measurement period of up to one year from the enactment date for companies to complete their accounting for the U.S. tax law changes. As such, our 2017 financial results reflected a provisional amount of $6,267 that was recorded as deferred tax expense related to the revaluation of deferred tax assets and liabilities, and a provisional amount of $11,734 that was recorded as current tax expense related to the transition tax on the mandatory deemed repatriation of foreign earnings. During the three and six months ended June 30, 2018 , we recognized measurement period adjustments that resulted in additional tax expense of $ 0 and $ 241 , respectively. Any subsequent adjustments to our provisional estimated amounts will be recorded to tax expense in the quarter when the analysis is complete. For the calendar year beginning in 2018, we are subject to several new provisions of the Tax Act including but not limited to the Global Intangible Low-Taxed Income (GILTI) tax. We have provisionally elected to account for any GILTI tax in the period in which it is incurred, and therefore have not provided any deferred tax impacts in our consolidated financial statements. For these computations, we have recorded an estimate in our effective tax rate for the three-months ended June 30, 2018 . The company will continue to refine our estimates as additional guidance and information becomes available. In general, outside of Canada and the U.K., it has been our historical practice to permanently reinvest the earnings of our non-U.S. subsidiaries into those operations. However, as a result of the Tax Act, we can repatriate our cumulative undistributed foreign earnings to the U.S. as needed with minimal U.S. income tax consequences other than the one-time deemed repatriation tax. We will continue to evaluate whether to repatriate all or a portion of the cumulative undistributed foreign earnings based on expansion needs and as circumstances change. We are still evaluating whether to change our indefinite reinvestment assertion in light of the Tax Act and consider that conclusion to be incomplete under guidance issued by SAB 118. If we subsequently change our assertion during the measurement period, we will account for the change in assertion as part of the Tax Act enactment. Our continuing practice is to recognize interest and/or penalties related to income tax matters as income tax expense. For the three and six months ended June 30, 2018 , and 2017 , we recorded interest and penalties of $0 and $176 , and $ 14 and $ 352 , respectively. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 18 - Business Combinations On May 15, 2017, we acquired 100% of the equity interest in Noliac A/S, a privately-held company, for $ 19.3 million in cash. Noliac A/S is a designer and manufacturer of tape cast and bulk piezoelectric material as well as transducers for use in the telecommunications, industrial, medical, and defense industries. This acquisition enabled us to increase our product base within our ceramics product lines as well as expand our presence in the European market. The purchase price of $ 19,121 , net of cash acquired of $ 199 , has been allocated to the assets acquired and liabilities assumed on the acquisition date based on their fair values. Fair Values at May 15, 2017 Current assets $ 2,836 Property, plant and equipment 580 Other assets 395 Goodwill 9,313 Intangible assets 9,142 Fair value of assets acquired 22,266 Less fair value of liabilities acquired (3,145 ) Net cash paid $ 19,121 Goodwill recorded in connection with this acquisition represents the value we expect to be created by combining the operations of the acquired business with our existing operations, including the expansion into markets within our existing business, access to new customers, and potential cost savings and synergies. Goodwill related to this acquisition is expected to be deductible for tax purposes. We incurred $ 291 in transaction related costs during the six months ended June 30, 2017. These costs are included in selling, general and administrative costs in our Consolidated Statements of Earnings. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Changes in Accounting Principles Beginning in January 2018, CTS adopted the provisions of Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)" under the modified retrospective method, which requires a cumulative effect adjustment to the opening balance of retained earnings on the date of adoption. This approach was applied to contracts not completed as of December 31, 2017. At date of adoption, there was no significant change to our past revenue recognition practices and therefore no adjustment to the opening balance of retained earnings was required. Beginning in April 2018, CTS elected to adopt the provisions of ASU No. 2017-12 "Derivatives and Hedging (Topic 815): Target Improvements to Accounting for Hedging Activities" under the modified retrospective method, which requires a cumulative effect adjustment to the opening balance of retained earnings. Prior to adoption, the company measured hedge effectiveness for all cash flow hedges quarterly and recognized any ineffectiveness in earnings in the current period. Upon adoption the company elected to review hedge effectiveness qualitatively as described further in Note 12 - Derivative Financial Instruments. At the date of adoption there was no significant hedge ineffectiveness recorded in earnings for hedged assets existing as of January 1, 2018, and therefore no adjustment to the opening balance of retained earnings was required. |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS” "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2017 . The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. |
Recent Accounting Pronouncements | NOTE 19 — Recent Accounting Pronouncements ASU 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". This ASU allows for a reclassification from accumulated comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in December 2017. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period for which financial statements have not been issued. We are evaluating the impact this ASU may have on our financial statements. ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" In August 2017, the FASB issued ASU No. 2017-12 "Derivatives and Hedging (Topic 815): Target Improvements to Accounting for Hedging Activities" . This ASU is meant to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This ASU also allows an entity to assess hedge effectiveness on a qualitative basis subsequent to the initial quantitative assessment if the facts and circumstances related to the hedging relationship have not changed such that the entity can assert qualitatively that the hedging relationship was and continues to be highly effective. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. Any changes should be applied to all hedging relationships that exist at the date of adoption by applying a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year of adoption. Presentation and disclosure guidance is to be applied prospectively. We adopted the provisions of ASU 2017-12 as of April 1, 2018, see Note 1, Basis of Presentation. ASU 2017-07 "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost" In March 2017, the FASB issued ASU No. 2017-07 "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and net Periodic Post-retirement Benefit Cost" . This ASU is meant to improve the presentation of net periodic pension and net periodic post-retirement benefits costs. Currently, pension and post-retirement benefit costs are comprised of several components reflecting the different aspects of an employer's financial arrangements and cost of providing benefits to employees. These components are aggregated for reporting, but prior guidance does not prescribe where the net cost should be presented in the income statement or capitalized in assets. This ASU requires disaggregation of the service cost component from other components of net benefit cost and provides explicit guidance on how to present the service cost and other components in the income statement, allowing only the service cost component of net benefit costs to be eligible for capitalization. These amendments should be applied retrospectively for the presentation of service cost and other components of net periodic pension and net post-retirement benefit cost in the income statement and prospectively for the capitalization of service cost and net periodic pension cost and periodic post-retirement benefit in assets. We adopted this ASU as of January 1, 2018. It did not have a material impact on our financial statements because the service cost component of our pension cost is immaterial to our financial results on a prospective basis. ASU 2017-04 "Intangibles -Goodwill and Other (Topic 305): Simplifying the Test for Goodwill Impairment" In January 2017, the FASB issued ASU No. 2017-04 "Intangibles - Goodwill and Other (Topic 305): Simplifying the Test for Goodwill Impairment" . This ASU is meant to simplify the subsequent measurement of goodwill for impairment by eliminating the current Step 2 analysis in computing the implied fair value of goodwill. In addition, this ASU requires an entity to consider income tax effects on any tax deductible goodwill on the carrying amount of the reporting unit when measuring an impairment loss, if applicable. Under this ASU, impairment is determined by comparing the reporting unit's fair value to the carrying value. This amendment is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect this guidance to have an impact on our financial statements. ASU 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of Business" In January 2017, the FASB issued ASU No. 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of Business" . This ASU is meant to clarify the definition of a business to add guidance when determining when an acquisition or disposal should be accounted for as a sale of assets or business. This ASU provides a more robust framework to use in determining when a set of assets or activities should be classified as a business, providing more consistency in accounting for business or asset acquisitions. We adopted this ASU on January 1, 2018 and it will be applied to any business combinations subsequent to that date. ASU 2016-16 "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory" In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory" . This ASU is meant to improve the accounting for the income tax effect of intra-entity transfers of assets other than inventory. Currently, U.S. GAAP prohibits the recognition of current and deferred income taxes for intra-entity asset transfers until the asset is sold to a third party. This ASU will now require companies to recognize the income tax effect of an intra-entity asset transfer (other than inventory) when the transaction occurs. This ASU is effective for public companies, for fiscal years beginning after December 15, 2019 and interim periods within those annual reporting periods. Early adoption is permitted and is to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This guidance is not expected to have a material impact on our consolidated financial statements. ASU 2016-15 "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments" In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments". This ASU reduces the diversity in reporting of eight specific cash flow issues due to accounting guidance that is unclear or does not exist. The eight issues relate to certain debt activities, business combination activities, insurance settlements and other various activities. We adopted this ASU as of January 1, 2018 and it did not have an impact on our financial statements. ASU 2016-02 "Leases (Topic 842)" In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This amendment created a new Topic under the accounting standards codification to account for the provisions of the ASU. This amendment is meant to provide transparency and to improve comparability between entities. The ASU requires companies to record an asset and liability on the balance sheet for leases that were formerly designated as operating leases as well as leases designated as financing leases. The provisions of the ASU predominately change the recognition of leases for lessees; the provisions do not substantially change the accounting for lessors. This ASU will supersede the provisions of Topic 840 Leases. The liability recorded for a lease is meant to recognize the lease payments and the asset as a right to use the underlying asset for the lease, including optional periods if it is reasonably certain the option will be exercised. Recording of the liability should be based on the present value of the lease payments. If a lease term is less than twelve months, a company is allowed to elect not to record the asset and liability. Expense related to these leases are to be amortized on a straight-line basis over the expected term of the lease. Additionally, the provisions of this ASU provide additional guidance on separating lease terms from maintenance and other type of provisions that provide a good or service, accounting for sale-leaseback provisions, and leveraged leases. Reporting in the cash flow statement remains virtually unchanged. Additional qualitative and quantitative disclosures are required. These updates are required to be applied under a modified retrospective approach from the beginning of the earliest period presented in our financial statements upon adoption. The modified approach provides optional practical expedients that may be elected, which will allow companies to continue to account for leases under the previous guidance for leases that commenced prior to the effective date. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. We have begun the process of reviewing existing agreements and are evaluating the impact of this ASU on our financial statements. We expect certain operating leases to be recognized as assets and liabilities as a result of adopting the standard. |
Subsequent Events [Text Block] | Subsequent Events We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the date the consolidated financial statements are issued. |
Revenue Recognition Contract As
Revenue Recognition Contract Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Contract Assets and Liabilities [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract assets and liabilities included in our Condensed Consolidated Balance Sheets are as follows: As of June 30, December 31, 2018 2017 Contract Assets Prepaid rebates included in Other current assets $ 64 $ 52 Prepaid rebates included in Other assets 482 465 Total Contract Assets $ 546 $ 517 Contract Liabilities Customer discounts and price concessions included in Accrued liabilities $ (2,323 ) $ (1,133 ) Customer rights of return included in Accrued liabilities (341 ) (462 ) Total Contract Liabilities $ (2,664 ) $ (1,595 ) |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregated Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents revenues disaggregated by the major markets we serve: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Aero & Defense $ 6,024 $ 4,675 $ 11,127 $ 9,332 Industrial 22,773 19,214 43,129 36,326 Medical 9,793 7,474 19,034 14,288 Telecom & IT 5,525 5,602 10,050 10,780 Transportation 73,906 68,721 148,211 135,114 Total $ 118,021 $ 105,686 $ 231,551 $ 205,840 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Components of Accounts Receivable | The components of accounts receivable are as follows: As of June 30, December 31, 2018 2017 Accounts receivable, gross $ 76,032 $ 70,941 Less: Allowance for doubtful accounts (435 ) (357 ) Accounts receivable, net $ 75,597 $ 70,584 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following: As of June 30, December 31, 2018 2017 Finished goods $ 11,778 $ 9,203 Work-in-process 12,008 12,065 Raw materials 23,529 21,150 Less: Inventory reserves (5,644 ) (5,822 ) Inventories, net $ 41,671 $ 36,596 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment is comprised of the following: As of June 30, December 31, 2018 2017 Land $ 1,137 $ 1,130 Buildings and improvements 68,778 64,201 Machinery and equipment 225,843 223,650 Less: Accumulated depreciation (202,128 ) (200,734 ) Property, plant and equipment, net $ 93,630 $ 88,247 Depreciation expense for the three months ended June 30, 2018 $ 3,774 Depreciation expense for the six months ended June 30, 2018 $ 7,537 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Net Pension Income or Postretirement Expense | Net pension expense (income) for our domestic and foreign plans was as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Net pension expense (income) $ 78 $ (491 ) $ 157 $ (924 ) The components of net pension expense (income) for our domestic and foreign plans include the following: Domestic Pension Plans Foreign Pension Plans Three Months Ended Three Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service cost $ — $ — $ 11 $ 12 Interest cost 1,781 2,068 11 9 Expected return on plan assets (1) (3,225 ) (4,060 ) (6 ) (5 ) Amortization of loss 1,466 1,446 40 39 Expense (income), net $ 22 $ (546 ) $ 56 $ 55 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service cost $ — $ — $ 22 $ 24 Interest cost 3,562 4,136 22 17 Expected return on plan assets (1) (6,450 ) (8,121 ) (13 ) (10 ) Amortization of loss 2,932 2,892 82 77 Other cost due to retirement — 61 — — Expense (income), net $ 44 $ (1,032 ) $ 113 $ 108 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service cost $ — $ — $ 1 $ 1 Interest cost 39 40 78 80 Amortization of gain (11 ) (25 ) (23 ) (50 ) Expense, net $ 28 $ 15 $ 56 $ 31 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of other intangible assets | Intangible assets consist of the following components: As of June 30, 2018 Gross Accumulated Net Amount Customer lists/relationships $ 64,323 $ (35,387 ) $ 28,936 Patents 10,319 (10,319 ) — Technology and other intangibles 44,460 (12,039 ) 32,421 In process research and development 2,200 — 2,200 Other intangible assets, net $ 121,302 $ (57,745 ) $ 63,557 Amortization expense for the three months ended June 30, 2018 $ 1,704 Amortization expense for the six months ended June 30, 2018 $ 3,424 As of December 31, 2017 Gross Accumulated Net Amount Customer lists/relationships $ 64,323 $ (33,685 ) $ 30,638 Patents 10,319 (10,319 ) — Technology and other intangibles 44,460 (10,355 ) 34,105 In process research and development 2,200 — 2,200 Other intangible assets, net $ 121,302 $ (54,359 ) $ 66,943 Amortization expense for the three months ended June 30, 2017 $ 1,613 Amortization expense for the three months ended June 30, 2017 $ 3,149 |
Summary of amortization expense remaining for other intangible assets | mortization expense for other intangible assets as of June 30, 2018 is as follows: Amortization 2018 $ 3,377 2019 6,754 2020 6,624 2021 6,467 2022 6,230 Thereafter 34,105 Total amortization expense $ 63,557 |
Costs Associated with Exit an32
Costs Associated with Exit and Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Reserve Activity | The following table displays the restructuring liability activity for all plans for the six months ended June 30, 2018 : Restructuring liability at January 1, 2018 $ 1,913 Restructuring charges 2,367 Cost paid (2,603 ) Other activity (1) (21 ) Restructuring liability at June 30, 2018 $ 1,656 (1) Other activity includes the effects of currency translation and other charges that do not flow through restructuring expense. |
June 2016 Plan | |
Restructuring and Restructuring Related Charges of Actual Costs | Total restructuring charges, all related to the June 2016 Plan described below, were as follows: Three Months Ended June 30, 2018 June 30, 2017 Restructuring charges $ 1,172 $ 729 |
Schedule of Planned and Actual Costs Incurred to Date | The following table displays the planned restructuring charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through June 30, 2018 : Actual costs Planned incurred through June 2016 Plan Costs June 30, 2018 Workforce reduction $ 3,075 $ 3,211 Building and equipment relocation 9,025 5,518 Other charges 1,300 825 Total restructuring charges $ 13,400 $ 9,554 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Components of Accrued Liabilities | The components of accrued liabilities are as follows: As of June 30, December 31, 2018 2017 Accrued product related costs $ 4,716 $ 5,297 Accrued income taxes 8,512 5,475 Accrued property and other taxes 2,080 997 Accrued professional fees 3,055 2,228 Contract liabilities 2,664 1,595 Dividends payable 1,323 1,318 Remediation reserves 14,570 17,067 Other accrued liabilities 6,885 7,367 Total accrued liabilities $ 43,805 $ 41,344 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt was comprised of the following: As of June 30, December 31, 2018 2017 Total credit facility $ 300,000 $ 300,000 Balance outstanding $ 57,000 $ 76,300 Standby letters of credit $ 1,940 $ 2,065 Amount available $ 241,060 $ 221,635 Weighted-average interest rate 3.01 % 2.30 % Commitment fee percentage per annum 0.25 % 0.25 % |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of June 30, 2018 , are shown in the following table: As of June 30, December 31, 2018 2017 Interest rate swaps reported in Other current assets $ 524 $ 278 Interest rate swaps reported in Other assets $ 835 $ 693 Foreign currency hedges reported in Other current assets $ 76 $ — Foreign currency hedges reported in Accrued liabilities $ — $ (742 ) |
Derivative Instruments, Gain (Loss) | The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Foreign Exchange Contracts: Gain (loss) recognized in Net sales $ 21 $ (57 ) $ (37 ) $ (59 ) Gain (loss) recognized in Cost of goods sold 32 58 140 (86 ) (Loss) gain recognized in Selling, general and administrative expense (4 ) 13 (5 ) 10 Loss recognized in Other income — (1 ) (1 ) (9 ) Interest Rate Swaps: Benefit recorded in Interest expense $ 105 $ — $ 170 $ — Total gain (loss) $ 154 $ 13 $ 267 $ (144 ) The table below provides a reconciliation of the recurring financial assets (liabilities) for our derivative instruments: Foreign Interest Currency Total gains (losses) for the period: Rate Swaps Hedges Balance at January 1, 2017 $ 753 $ (601 ) Settled in cash — (132 ) Included in earnings — 38 Included in other comprehensive earnings 218 (47 ) Balance at December 31, 2017 $ 971 $ (742 ) Settled in cash — (21 ) Included in earnings (170 ) 97 Included in other comprehensive earnings 558 742 Balance at June 30, 2018 $ 1,359 $ 76 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive (Loss) Income | The components of accumulated other comprehensive (loss) income for the three months ended June 30, 2018 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2018 in OCI to Income 2018 Changes in fair market value of hedges: Gross $ 1,332 $ 240 $ (154 ) $ 1,418 Income tax (benefit) expense (341 ) (54 ) 35 (360 ) Net 991 186 (119 ) 1,058 Changes in unrealized pension cost: Gross (128,672 ) — 1,617 (127,055 ) Income tax expense (benefit) 52,520 — (368 ) 52,152 Net (76,152 ) — 1,249 (74,903 ) Cumulative translation adjustment: Gross (1,747 ) (368 ) — (2,115 ) Income tax expense (benefit) 105 (7 ) — 98 Net (1,642 ) (375 ) — (2,017 ) Total accumulated other comprehensive (loss) income $ (76,803 ) $ (189 ) $ 1,130 $ (75,862 ) The components of accumulated other comprehensive (loss) income for the three months ended June 30, 2017 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of March 31, Recognized from AOCI June 30, 2017 in OCI to Income 2017 Changes in fair market value of hedges: Gross $ 1,308 $ (223 ) $ (15 ) $ 1,070 Income tax (benefit) expense (474 ) 81 5 (388 ) Net 834 (142 ) (10 ) 682 Changes in unrealized pension cost: Gross (150,322 ) — 1,466 (148,856 ) Income tax expense (benefit) 60,192 — (524 ) 59,668 Net (90,130 ) — 942 (89,188 ) Cumulative translation adjustment: Gross (2,328 ) 196 — (2,132 ) Income tax expense 94 4 — 98 Net (2,234 ) 200 — (2,034 ) Total accumulated other comprehensive (loss) income $ (91,530 ) $ 58 $ 932 $ (90,540 ) The components of accumulated other comprehensive (loss) income for the six months ended June 30, 2018 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2017 in OCI to Income 2018 Changes in fair market value of hedges: Gross $ 289 $ 1,397 $ (268 ) $ 1,418 Income tax (benefit) expense (105 ) (315 ) 60 (360 ) Net 184 1,082 (208 ) 1,058 Changes in unrealized pension cost: Gross (130,096 ) — 3,041 (127,055 ) Income tax expense (benefit) 52,837 — (685 ) 52,152 Net (77,259 ) — 2,356 (74,903 ) Cumulative translation adjustment: Gross (1,985 ) (130 ) — (2,115 ) Income tax expense (benefit) 100 (2 ) — 98 Net (1,885 ) (132 ) — (2,017 ) Total accumulated other comprehensive (loss) income $ (78,960 ) $ 950 $ 2,148 $ (75,862 ) The components of accumulated other comprehensive (loss) income for the six months ended June 30, 2017 , are as follows: Gain (Loss) As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI June 30, 2016 in OCI to Income 2017 Changes in fair market value of hedges: Gross $ 116 $ 819 $ 135 $ 1,070 Income tax benefit (42 ) (297 ) (49 ) (388 ) Net 74 522 86 682 Changes in unrealized pension cost: Gross (151,618 ) — 2,762 (148,856 ) Income tax expense (benefit) 60,672 — (1,004 ) 59,668 Net (90,946 ) — 1,758 (89,188 ) Cumulative translation adjustment: Gross (2,414 ) 282 — (2,132 ) Income tax expense 92 6 — 98 Net (2,322 ) 288 — (2,034 ) Total accumulated other comprehensive (loss) income $ (93,194 ) $ 810 $ 1,844 $ (90,540 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Summary of Share Count and Par Value Data Related to Shareholders' Equity | Share count and par value data related to shareholders’ equity are as follows: As of June 30, December 31, 2018 2017 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding — — Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 56,781,065 56,632,488 Shares outstanding 33,087,043 32,938,466 Treasury stock Shares held 23,694,022 23,694,022 |
Summary of Common Shares Outstanding | A roll-forward of common shares outstanding is as follows: Six Months Ended June 30, June 30, 2018 2017 Balance at the beginning of the year 32,938,466 32,762,494 Repurchases — — Shares issued upon exercise of stock options — — Restricted share issuances 148,577 170,832 Balance at the end of the period 33,087,043 32,933,326 Certain potentially dilutive restricted stock units are excluded from diluted earning per share because they are anti-dilutive. The number of awards that were anti-dilutive at June 30, 2018 and June 30, 2017 were 72,658 and 122,511 , respectively. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Equity-Based Compensation Expense | The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Service-Based RSUs $ 563 $ 465 $ 1,018 $ 1,015 Performance-Based RSUs 643 297 1,153 680 Cash-settled RSUs 57 46 15 (8 ) Total $ 1,263 $ 808 $ 2,186 $ 1,687 Income tax benefit 285 304 494 634 Net $ 978 $ 504 $ 1,692 $ 1,053 |
Schedule of Unrecognized Equity-Based Compensation Expense | The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average June 30, 2018 Period Service-Based RSUs $ 1,973 1.94 Performance-Based RSUs 3,326 1.64 Total $ 5,299 1.75 |
Summary of Status of Equity-Based Compensation Plans | The following table summarizes the status of these plans as of June 30, 2018 : 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Plan Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Performance-based options outstanding — 285,000 — — — Maximum potential RSU and cash settled awards outstanding — 732,975 92,600 35,952 5,522 Maximum potential awards outstanding — 1,017,975 92,600 35,952 5,522 RSUs and cash settled awards vested and released — — — — — Awards available for grant 2,500,000 — — — — |
Summary of Service-Based Restricted Stock Units | summarizes the service-based RSU activity as of and for the six months ended June 30, 2018 : Units Weighted Outstanding at January 1, 2018 399,347 $ 14.60 Granted 74,222 26.31 Vested and released (130,301 ) 14.22 Forfeited (1,938 ) 20.86 Outstanding at June 30, 2018 341,330 $ 17.26 Releasable at June 30, 2018 194,674 $ 12.82 |
Schedule of Components of Performance-Based RSU's | The following table summarizes the performance and market-based RSU activity as of and for the six months ended June 30, 2018 : Units Weighted Outstanding at January 1, 2018 271,305 $ 18.77 Granted 72,043 28.75 Attained by performance 18,600 17.66 Released (72,456 ) 18.66 Forfeited (21,700 ) 17.66 Outstanding at June 30, 2018 267,792 $ 21.44 Releasable at June 30, 2018 — $ — The following table summarizes each grant of performance awards outstanding at June 30, 2018 . Description Grant Date Vesting Year Vesting Dependency Target Units Outstanding Maximum Number of Units to be Granted 2016 - 2018 Performance RSUs February 16, 2016 2018 35% RTSR, 35% sales growth, 30% operating cash flow 92,840 185,680 2017 - 2019 Performance RSUs February 9, 2017 2019 35% RTSR, 35% sales growth, 30% operating cash flow 71,796 143,592 2017 - 2019 Performance RSUs February 9, 2017 2018 - 2020 Operating Income 27,113 27,113 2018 - 2020 Performance RSUs February 8, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 40,223 80,446 2018 - 2020 Performance RSUs February 16, 2018 2020 35% RTSR, 35% sales growth, 30% operating cash flow 31,820 63,640 Single Crystal Performance RSUs March 31, 2016 2018 Various 4,000 8,000 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Liability Measured at Fair Value on a Recurring Basis | The table below summarizes our financial assets that were measured at fair value on a recurring basis at June 30, 2018 : Quoted Prices Asset in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable June 30, Instruments Inputs Inputs 2018 (Level 1) (Level 2) (Level 3) Interest rate swaps $ 1,359 $ — $ 1,359 $ — Foreign currency hedges $ 76 $ — $ 76 $ — The table below summarizes the financial assets (liabilities) that were measured at fair value on a recurring basis as of December 31, 2017 : Quoted Asset Prices (Liability) in Active Significant Carrying Markets for Other Significant Value at Identical Observable Unobservable December 31, Instruments Inputs Inputs 2017 (Level 1) (Level 2) (Level 3) Interest rate swaps $ 971 $ — $ 971 $ — Foreign currency hedges $ (742 ) $ — $ (742 ) $ — |
Reconciliation of Recurring Financial Liability Related to Interest Rate Swaps | The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Foreign Exchange Contracts: Gain (loss) recognized in Net sales $ 21 $ (57 ) $ (37 ) $ (59 ) Gain (loss) recognized in Cost of goods sold 32 58 140 (86 ) (Loss) gain recognized in Selling, general and administrative expense (4 ) 13 (5 ) 10 Loss recognized in Other income — (1 ) (1 ) (9 ) Interest Rate Swaps: Benefit recorded in Interest expense $ 105 $ — $ 170 $ — Total gain (loss) $ 154 $ 13 $ 267 $ (144 ) The table below provides a reconciliation of the recurring financial assets (liabilities) for our derivative instruments: Foreign Interest Currency Total gains (losses) for the period: Rate Swaps Hedges Balance at January 1, 2017 $ 753 $ (601 ) Settled in cash — (132 ) Included in earnings — 38 Included in other comprehensive earnings 218 (47 ) Balance at December 31, 2017 $ 971 $ (742 ) Settled in cash — (21 ) Included in earnings (170 ) 97 Included in other comprehensive earnings 558 742 Balance at June 30, 2018 $ 1,359 $ 76 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Income Taxes Rate | The effective tax rates for the three and six -month periods ended June 30, 2018 and 2017 were: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 Effective tax rate 37.7 % 28.4 % 30.2 % 29.4 % |
Revenue Recognition Contract 41
Revenue Recognition Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Contract Assets and Liabilities [Abstract] | |||
Contract with Customer, Liability, Revenue Recognized | $ 0 | $ (86) | |
Contract with Customer, Asset, Net, Current | 64 | 64 | $ 52 |
Contract with Customer, Asset, Net, Noncurrent | 482 | 482 | 465 |
Contract with Customer, Asset, Net | 546 | 546 | 517 |
Customer Contract Liability Discounts | (2,323) | (2,323) | (1,133) |
Customer Contract Liability Rights of Return | (341) | (341) | (462) |
Contract with Customer, Liability, Current | $ (2,664) | $ (2,664) | $ (1,595) |
Revenue Recognition Disaggreg42
Revenue Recognition Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 118,021 | $ 105,686 | $ 231,551 | $ 205,840 |
Aerospace and Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,024 | 4,675 | 11,127 | 9,332 |
Industrial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,773 | 19,214 | 43,129 | 36,326 |
Medical [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,793 | 7,474 | 19,034 | 14,288 |
Telecommunications & IT [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,525 | 5,602 | 10,050 | 10,780 |
Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 73,906 | $ 68,721 | $ 148,211 | $ 135,114 |
Accounts Receivable - Component
Accounts Receivable - Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Receivable | ||
Accounts receivable, gross | $ 76,032 | $ 70,941 |
Less: Allowance for doubtful accounts | (435) | (357) |
Accounts receivable, net | $ 75,597 | $ 70,584 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventories | ||
Finished goods | $ 11,778 | $ 9,203 |
Work-in-process | 12,008 | 12,065 |
Raw materials | 23,529 | 21,150 |
Less: Inventory reserves | (5,644) | (5,822) |
Inventories, net | $ 41,671 | $ 36,596 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Property, plant and equipment | |||
Less: Accumulated depreciation | $ (202,128) | $ (202,128) | $ (200,734) |
Property, plant and equipment, net | 93,630 | 93,630 | 88,247 |
Depreciation | 3,774 | 7,537 | |
Land | |||
Property, plant and equipment | |||
Property, plant and equipment gross | 1,137 | 1,137 | 1,130 |
Buildings and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment gross | 68,778 | 68,778 | 64,201 |
Machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment gross | $ 225,843 | $ 225,843 | $ 223,650 |
Retirement Plans - Net Pension
Retirement Plans - Net Pension Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans | ||||
Defined Benefit Plan Disclosure | ||||
Net pension expense (income) | $ 78 | $ (491) | $ 157 | $ (924) |
Retirement Plans - Net Pensio47
Retirement Plans - Net Pension Income Domestic and Foreign (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans | ||||
Net pension expense (income) | ||||
(Income) expense, net | $ 78 | $ (491) | $ 157 | $ (924) |
Foreign Plan [Member] | ||||
Net pension expense (income) | ||||
Service cost | 11 | 12 | 22 | 24 |
Interest cost | 11 | 9 | 22 | 17 |
Defined Benefit Plan, Expected Return on Plan Assets, Net of Expenses | (6) | (5) | (13) | (10) |
Amortization of loss | 40 | 39 | 82 | 77 |
(Income) expense, net | 56 | 55 | 113 | 108 |
Domestic Plan [Member] | ||||
Net pension expense (income) | ||||
Interest cost | 1,781 | 2,068 | 3,562 | 4,136 |
Defined Benefit Plan, Expected Return on Plan Assets, Net of Expenses | (3,225) | (4,060) | (6,450) | (8,121) |
Amortization of loss | 1,466 | 1,446 | 2,932 | 2,892 |
Other cost due to retirement | 0 | 61 | ||
(Income) expense, net | $ 22 | $ (546) | $ 44 | $ (1,032) |
Retirement Plans - Other Postre
Retirement Plans - Other Postretirement Benefit Plan (Details) - Other Postretirement Benefits Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure | ||||
Service cost | $ 0 | $ 0 | $ 1 | $ 1 |
Interest cost | 39 | 40 | 78 | 80 |
Amortization of gain | (11) | (25) | (23) | (50) |
(Income) expense, net | $ 28 | $ 15 | $ 56 | $ 31 |
Other Intangible Assets - Summa
Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Other Intangible Assets | |||||
Gross Carrying Amount | $ 121,302 | $ 121,302 | $ 121,302 | ||
Accumulated Amortization | (57,745) | (57,745) | (54,359) | ||
Total amortization expense | 63,557 | 63,557 | 66,943 | ||
Amortization expense | 1,704 | $ 1,613 | 3,424 | $ 3,149 | |
Customer lists/relationships | |||||
Other Intangible Assets | |||||
Gross Carrying Amount | 64,323 | 64,323 | 64,323 | ||
Accumulated Amortization | (35,387) | (35,387) | (33,685) | ||
Total amortization expense | 28,936 | 28,936 | 30,638 | ||
Patents | |||||
Other Intangible Assets | |||||
Gross Carrying Amount | 10,319 | 10,319 | 10,319 | ||
Accumulated Amortization | (10,319) | (10,319) | (10,319) | ||
Total amortization expense | 0 | 0 | 0 | ||
Technology and other intangibles | |||||
Other Intangible Assets | |||||
Gross Carrying Amount | 44,460 | 44,460 | 44,460 | ||
Accumulated Amortization | (12,039) | (12,039) | (10,355) | ||
Total amortization expense | 32,421 | 32,421 | 34,105 | ||
In process research and development | |||||
Other Intangible Assets | |||||
Gross Carrying Amount | 2,200 | ||||
Total amortization expense | 2,200 | 2,200 | $ 2,200 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 2,200 | $ 2,200 |
Other Intangible Assets - Sum50
Other Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule | ||
2,016 | $ 3,377 | |
2,017 | 6,754 | |
2,018 | 6,624 | |
2,019 | 6,467 | |
2,020 | 6,230 | |
Thereafter | 34,105 | |
Total amortization expense | $ 63,557 | $ 66,943 |
Costs Associated with Exit an51
Costs Associated with Exit and Restructuring Activities - Summary (Details) - Operating Earnings - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
June 2013 Plan, April 2014 Plan and June 2016 Plan | ||||
Total restructuring, impairment and restructuring related charges | ||||
Restructuring and impairment charges | $ 1,172 | $ 2,367 | ||
June 2013 Plan, April 2014 Plan and June 2016 | ||||
Total restructuring, impairment and restructuring related charges | ||||
Restructuring and impairment charges | $ 729 | $ 1,507 |
Costs Associated with Exit an52
Costs Associated with Exit and Restructuring Activities Costs Associated with Exit and Restructuring Activities - June 2016 Plan (Details) - June 2016 Plan - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Actual costs incurred | $ 5,518 | |
Total restructuring, impairment and restructuring related charges | ||
Restructuring Reserve | 1,223 | $ 1,460 |
Operating Earnings | ||
Restructuring Cost and Reserve [Line Items] | ||
Planned Costs | 13,400 | |
Actual costs incurred | 9,554 | |
Equipment relocation | ||
Restructuring Cost and Reserve [Line Items] | ||
Planned Costs | 9,025 | |
Other charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Planned Costs | 1,300 | |
Other charges | Operating Earnings | ||
Restructuring Cost and Reserve [Line Items] | ||
Actual costs incurred | 825 | |
Workforce reduction | ||
Restructuring Cost and Reserve [Line Items] | ||
Planned Costs | 3,075 | |
Workforce reduction | Operating Earnings | ||
Restructuring Cost and Reserve [Line Items] | ||
Actual costs incurred | 3,211 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Planned Costs | $ 13,400 |
Costs Associated with Exit an53
Costs Associated with Exit and Restructuring Activities - April 2014 Plan (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
April 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 433 | $ 453 |
Costs Associated with Exit an54
Costs Associated with Exit and Restructuring Activities - Restructuring Reserve Activity (Details) - June 2013 Plan, April 2014 Plan and June 2016 Plan $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Restructuring reserve activity | |
Restructuring liability at beginning | $ 1,913 |
Restructuring and restructuring-related charges | 2,367 |
Cost paid | (2,603) |
Restructuring liability at ending | 1,656 |
Restructuring Reserve, Translation and Other Adjustment | $ (21) |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities | |||
Accrued product related costs | $ 4,716 | $ 5,297 | |
Accrued income taxes | 8,512 | 5,475 | |
Accrued property and other taxes | 2,080 | 997 | |
Accrued professional fees | 3,055 | 2,228 | |
Contract with Customer, Liability | 2,664 | 1,595 | |
Dividends payable | 1,323 | 1,318 | |
Remediation reserves | 14,570 | 17,067 | $ 18,176 |
Other accrued liabilities | 6,885 | 7,367 | |
Total accrued liabilities | $ 43,805 | $ 41,344 |
Contingencies Remediation Liabi
Contingencies Remediation Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Accrued Environmental Loss Contingencies, Current | $ 14,570 | $ 17,067 | $ 18,176 |
Accrual for Environmental Loss Contingencies, Charges to Expense for New Losses | 1,048 | 307 | |
Accrual for Environmental Loss Contingencies Payments, Net of Reimbursements | $ (3,545) | $ (1,416) |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | May 23, 2016 | May 22, 2016 | Aug. 10, 2015 | |
Long-term debt | |||||
Total credit facility | $ 300,000,000 | ||||
Amount available | 241,060,000 | $ 221,635,000 | |||
Long-term Line of Credit, Noncurrent | 57,000,000 | 76,300,000 | |||
Letters of Credit Outstanding, Amount | 1,940,000 | 2,065,000 | |||
Line of Credit | Revolving Credit Facility Due 2020 | |||||
Long-term debt | |||||
Total credit facility | 300,000,000 | $ 300,000,000 | $ 200,000,000 | $ 200,000,000 | |
Long-term Line of Credit, Noncurrent | $ 57,000,000 | $ 76,300,000 | |||
Weighted-average interest rate | 3.00% | 2.30% | |||
Commitment fee percentage per annum | 0.25% | 0.25% |
Debt - Narratives (Details)
Debt - Narratives (Details) - USD ($) | Aug. 10, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | May 23, 2016 | May 22, 2016 |
Line of Credit Facility | ||||||||
Line of credit maximum borrowing amount | $ 300,000,000 | $ 300,000,000 | ||||||
Debt amortization expense | 46,000 | $ 46,000 | 93,000 | $ 0 | ||||
Long-term Line of Credit, Noncurrent | 57,000,000 | $ 57,000,000 | $ 76,300,000 | |||||
Line of Credit | Revolving Credit Facility Due 2020 | ||||||||
Line of Credit Facility | ||||||||
Debt instrument, term | 5 years | |||||||
Line of credit maximum borrowing amount | $ 200,000,000 | $ 300,000,000 | $ 300,000,000 | $ 200,000,000 | ||||
Line of credit facility contingent increase to maximum borrowing capacity | $ 100,000,000 | |||||||
Commitment fee percentage per annum | 0.25% | 0.25% | ||||||
Long-term Line of Credit, Noncurrent | $ 57,000,000 | $ 57,000,000 | $ 76,300,000 | |||||
Line of Credit | Revolving Credit Facility Due 2020 Swingline Sublimit | ||||||||
Line of Credit Facility | ||||||||
Line of credit maximum borrowing amount | 15,000,000 | |||||||
Line of Credit | Revolving Credit Facility Due 2020 Letter Of Credit Sublimit | ||||||||
Line of Credit Facility | ||||||||
Line of credit maximum borrowing amount | $ 10,000,000 | |||||||
Minimum | Line of Credit | Revolving Credit Facility Due 2020 | ||||||||
Line of Credit Facility | ||||||||
Commitment fee percentage per annum | 0.20% | |||||||
Maximum | Line of Credit | Revolving Credit Facility Due 2020 | ||||||||
Line of Credit Facility | ||||||||
Commitment fee percentage per annum | 0.40% |
Derivative Financial Instrume59
Derivative Financial Instruments - Narratives (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($)instrument | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2012USD ($)instrument | Jun. 24, 2012USD ($)instrument | |
Derivative | ||||||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ 59 | $ 0 | ||||
Foreign exchange derivative | ||||||
Derivative | ||||||
Derivative Asset | 301 | |||||
Derivative Liability | 225 | |||||
Cash Flow Hedge | Designated As Hedging | Foreign currency forward contracts | ||||||
Derivative | ||||||
Foreign currency cash flow hedge gain to be reclassified during next 12 months | 5 | |||||
Derivative, notional amount | 21,100 | |||||
Derivative Asset | 76 | |||||
Derivative Liability | $ (742) | $ (601) | ||||
Cash Flow Hedge | Designated As Hedging | Interest rate swap | ||||||
Derivative | ||||||
Derivative, notional amount | $ 25,000 | $ 50,000 | ||||
Number of derivative instruments held | instrument | 3 | 4 | 4 | |||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | 524 | |||||
Derivative Asset | $ 1,359 | $ 971 | $ 753 |
Derivative Financial Instrume60
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Cash Flow Hedge - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest rate swap | Other Current Assets [Member] | |||
Derivative Liability | |||
Derivative Asset | $ 524 | $ 278 | |
Interest rate swap | Other Noncurrent Assets [Member] | |||
Derivative Liability | |||
Derivative Asset | 835 | 693 | |
Foreign currency hedges | Other Current Liabilities [Member] | |||
Derivative Liability | |||
Derivative Liability | 0 | (742) | |
Foreign currency hedges | Other Current Assets [Member] | |||
Derivative Liability | |||
Derivative Asset | 76 | 0 | |
Designated as Hedging Instrument [Member] | Interest rate swap | |||
Derivative Liability | |||
Derivative Asset | 1,359 | 971 | $ 753 |
Designated as Hedging Instrument [Member] | Foreign currency hedges | |||
Derivatives, Fair Value [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 5 | ||
Derivative Liability | |||
Derivative Liability | $ (742) | $ (601) | |
Derivative Asset | $ 76 |
Derivative Financial Instrume61
Derivative Financial Instruments - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative, Gain (Loss) on Derivative, Net | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 154 | $ 13 | $ 267 | $ (144) |
Foreign exchange derivative | Net sales | Designated As Hedging | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Derivative, Gain (Loss) on Derivative, Net | 21 | (57) | (37) | (59) |
Foreign exchange derivative | Cost of goods sold | Designated As Hedging | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Derivative, Gain (Loss) on Derivative, Net | 32 | 58 | 140 | (86) |
Foreign exchange derivative | Selling, general and administrative expenses | Designated As Hedging | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Derivative, Gain (Loss) on Derivative, Net | (4) | 13 | (5) | 10 |
Foreign exchange derivative | Other income and expenses | Designated As Hedging | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | (1) | (1) | (9) |
Interest rate swap | Interest expense | Designated As Hedging | ||||
Derivative, Gain (Loss) on Derivative, Net | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 105 | $ 0 | $ 170 | $ 0 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive (Loss) Income - Summary of Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Foreign currency transaction loss | ||||
Foreign currency transaction gain (loss) | $ 2,194 | $ (1,162) | $ 918 | $ (1,557) |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (78,960) | |||
Total accumulated other comprehensive (loss) income, end of period | (75,862) | (75,862) | ||
Accumulated other comprehensive (loss) income | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (76,803) | (91,530) | (78,960) | (93,194) |
Gain (Loss) recognized in OCI, Net | (189) | 58 | 950 | 810 |
Gain (Loss) reclassified from AOCI to income, Net | 1,130 | 932 | 2,148 | 1,844 |
Total accumulated other comprehensive (loss) income, end of period | (75,862) | (90,540) | (75,862) | (90,540) |
Changes in fair market value of hedges | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | 1,332 | 1,308 | 289 | 116 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 240 | (223) | 1,397 | 819 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (154) | (15) | (268) | 135 |
Gross, ending balance | 1,418 | 1,070 | 1,418 | 1,070 |
Changes in AOCI, Income tax (benefit) | ||||
Income tax (benefit), beginning of period | (341) | (474) | (105) | (42) |
Income tax (benefit), Gain (Loss) recognized in OCI | (54) | 81 | (315) | (297) |
Income tax (benefit), Gain (Loss) reclassified from AOCI to income | 35 | 5 | 60 | (49) |
Income tax (benefit), ending of period | (360) | (388) | (360) | (388) |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | 991 | 834 | 184 | 74 |
Gain (Loss) recognized in OCI, Net | 186 | (142) | 1,082 | 522 |
Gain (Loss) reclassified from AOCI to income, Net | (119) | (10) | (208) | 86 |
Total accumulated other comprehensive (loss) income, end of period | 1,058 | 682 | 1,058 | 682 |
Changes in unrealized pension cost | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (128,672) | (150,322) | (130,096) | (151,618) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,617 | 1,466 | 3,041 | 2,762 |
Gross, ending balance | (127,055) | (148,856) | (127,055) | (148,856) |
Changes in AOCI, Income tax (benefit) | ||||
Income tax (benefit), beginning of period | 52,520 | 60,192 | 52,837 | 60,672 |
Income tax (benefit), Gain (Loss) recognized in OCI | 0 | 0 | 0 | 0 |
Income tax (benefit), Gain (Loss) reclassified from AOCI to income | (368) | (524) | (685) | (1,004) |
Income tax (benefit), ending of period | 52,152 | 59,668 | 52,152 | 59,668 |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (76,152) | (90,130) | (77,259) | (90,946) |
Gain (Loss) recognized in OCI, Net | 0 | 0 | 0 | 0 |
Gain (Loss) reclassified from AOCI to income, Net | 1,249 | 942 | 2,356 | 1,758 |
Total accumulated other comprehensive (loss) income, end of period | (74,903) | (89,188) | (74,903) | (89,188) |
Cumulative translation adjustment | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (1,747) | (2,328) | (1,985) | (2,414) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (368) | 196 | (130) | 282 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 |
Gross, ending balance | (2,115) | (2,132) | (2,115) | (2,132) |
Changes in AOCI, Income tax (benefit) | ||||
Income tax (benefit), beginning of period | 105 | 94 | 100 | 92 |
Income tax (benefit), Gain (Loss) recognized in OCI | (7) | 4 | (2) | 6 |
Income tax (benefit), Gain (Loss) reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Income tax (benefit), ending of period | 98 | 98 | 98 | 98 |
AOCI Attributable to Parent, Net of Tax | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (1,642) | (2,234) | (1,885) | (2,322) |
Gain (Loss) recognized in OCI, Net | (375) | 200 | (132) | 288 |
Gain (Loss) reclassified from AOCI to income, Net | 0 | 0 | 0 | 0 |
Total accumulated other comprehensive (loss) income, end of period | $ (2,017) | $ (2,034) | $ (2,017) | $ (2,034) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred Stock | ||||
Preferred stock, par value per share | ||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common Stock | ||||
Common stock, par value per share | ||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | ||
Common stock, shares issued | 56,781,065 | 56,632,488 | ||
Common stock, shares outstanding | 33,087,043 | 32,938,466 | 32,933,326 | 32,762,494 |
Treasury stock | ||||
Treasury stock, shares held | 23,694,022 | 23,694,022 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Common stock repurchased, shares | 0 | 0 |
Common stock repurchased, value | $ 7,446 | |
Shares are available for future issuances | $ 17,554 | |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 0 | 0 |
Antidilutive securities excluded from computation of earnings per share (shares) | 72,658 | 122,511 |
Shareholders' Equity - Summar65
Shareholders' Equity - Summary of Common Shares Outstanding (Details) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Roll forward of common shares outstanding | ||
Balance at the beginning of the year | 32,938,466 | 32,762,494 |
Restricted share issuances | 148,577 | 170,832 |
Balance at the end of the period | 33,087,043 | 32,933,326 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)plan$ / sharesshares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)plan$ / sharesshares | Jun. 30, 2017USD ($) | Dec. 31, 2017$ / sharesshares | |
Share-based Compensation | |||||
Number of Equity-Based Compensation Plans | plan | 5 | 5 | |||
Restricted stock units | $ 2,186 | $ 1,687 | |||
Allocated Share-based Compensation Expense, Net of Tax | $ 978 | $ 504 | 1,692 | 1,053 | |
Service-Based RSUs | |||||
Share-based Compensation | |||||
Restricted stock units | 563 | 465 | 1,018 | 1,015 | |
Performance and market-based RSU's | |||||
Share-based Compensation | |||||
Restricted stock units | $ 643 | 297 | $ 1,153 | ||
Restricted stock expense (reversal) | (680) | ||||
Cash Settled Awards | |||||
Share-based Compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 17,248 | 17,248 | 14,082 | ||
Restricted stock expense (reversal) | $ (57) | (46) | $ (15) | (8) | |
RSUs | |||||
Share-based Compensation | |||||
Restricted stock units | 1,263 | 808 | 2,186 | 1,687 | |
Income tax benefit | $ 285 | $ 304 | $ 494 | $ 634 | |
Officers, key employees, and non-employee directors | Service-Based RSUs | |||||
Share-based Compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | shares | 1,938 | ||||
Releasable - weighted average fair value | $ / shares | $ 12.82 | $ 12.82 | |||
Granted - shares | shares | 74,222 | ||||
Forfeited - weighted average fair value | $ / shares | $ 20.86 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Released Number | shares | 130,301 | ||||
Granted - weighted average fair value | $ / shares | $ 26.31 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 17.26 | 17.26 | $ 14.60 | ||
Converted - weighted average fair value | $ / shares | $ 14.22 | ||||
Releasable - shares | shares | 194,674 | 194,674 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 341,330 | 341,330 | 399,347 |
Equity-Based Compensation - S67
Equity-Based Compensation - Summary of Equity-Based Compensation Expense related to Non-Vested RSUs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Service-Based RSUs | |
Share-based Compensation | |
Unrecognized compensation cost | $ 1,973 |
Weighted average period | 1 year 11 months 10 days |
Performance and market-based RSU's | |
Share-based Compensation | |
Unrecognized compensation cost | $ 3,326 |
Weighted average period | 1 year 7 months 20 days |
RSUs | |
Share-based Compensation | |
Unrecognized compensation cost | $ 5,299 |
Weighted average period | 1 year 8 months 29 days |
Equity-Based Compensation - S68
Equity-Based Compensation - Summary of Status of Equity-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Summary of Status of Equity-Based Compensation Plans | ||
Other accrued liabilities | $ 6,885 | $ 7,367 |
2018 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Awards originally available | 2,500,000 | |
Shares outstanding | 0 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Released Number | 0 | |
Awards available for grant | 2,500,000 | |
2014 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Awards originally available | 1,500,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Released Number | 0 | |
2009 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Awards originally available | 3,400,000 | |
2004 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Awards originally available | 6,500,000 | |
RSUs | 2014 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Shares outstanding | 732,975 | |
RSUs | 2009 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Shares outstanding | 92,600 | |
RSUs | 2004 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Shares outstanding | 35,952 | |
RSUs | Directors' Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Shares outstanding | 5,522 | |
Performance-Based Stock Options | 2018 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Stock options outstanding | 0 | |
Performance-Based Stock Options | 2014 Plan | ||
Summary of Status of Equity-Based Compensation Plans | ||
Awards originally available | 350,000 | |
Shares outstanding | 285,000 | |
Stock options outstanding | 285,000 | |
Cash Settled Awards | ||
Summary of Status of Equity-Based Compensation Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 17,248 | 14,082 |
Other accrued liabilities | $ 184 | $ 241 |
Officers, key employees, and non-employee directors | Service-Based RSUs | ||
Share-based Compensation | ||
Releasable - weighted average fair value | $ 12.82 | |
Summary of Status of Equity-Based Compensation Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 341,330 | 399,347 |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance-Based Stock Options (Details) - USD ($) | May 26, 2015 | Jun. 30, 2018 |
Performance and Market-based Restricted Stock Units | ||
Share-based Compensation | ||
Attained by performance - weighted average fair value | $ 17.66 | |
2014 Plan | ||
Share-based Compensation | ||
Awards granted (in shares) | 1,500,000 | |
2014 Plan | Performance-Based Stock Options | ||
Share-based Compensation | ||
Awards granted (in shares) | 350,000 | |
Grant date fair value (in dollars per share) | $ 18.37 | |
Option term (in years) | 5 years | |
Revenue threshold for award | $ 600,000 |
Equity-Based Compensation - S70
Equity-Based Compensation - Summary of Service-Based Restricted Stock Units (Details) - Officers, key employees, and non-employee directors - Service-Based RSUs | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Units | |
Outstanding at beginning of year - shares | shares | 399,347 |
Granted - shares | shares | 74,222 |
Released - shares | shares | (130,301) |
Forfeited - shares | shares | (1,938) |
Outstanding at end of year - shares | shares | 341,330 |
Releasable - shares | shares | 194,674 |
Weighted Average Grant Date Fair Value | |
Beginning of year - weighted average fair value | $ / shares | $ 14.60 |
Granted - weighted average fair value | $ / shares | 26.31 |
Converted - weighted average fair value | $ / shares | 14.22 |
Forfeited - weighted average fair value | $ / shares | 20.86 |
End of year - weighted average fair value | $ / shares | 17.26 |
Releasable - weighted average fair value | $ / shares | $ 12.82 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Performance-Based RSUs (Details) - shares | Jun. 30, 2018 | Feb. 16, 2018 | Feb. 08, 2018 | Feb. 09, 2017 | Mar. 31, 2016 | Feb. 16, 2016 |
Performance and Market-based Restricted Stock Units | ||||||
Share-based Compensation | ||||||
Maximum potential units outstanding at June 30, 2016 - shares | 0 | |||||
Performance-Based RSUs | ||||||
Share-based Compensation | ||||||
Target Units Outstanding | 31,820 | 40,223 | 71,796 | 4,000 | 92,840 | |
Shared Based Compensation Maximum Potential Awards | 63,640 | 80,446 | 143,592 | 8,000 | 185,680 | |
Performance Shares [Member] | ||||||
Share-based Compensation | ||||||
Target Units Outstanding | 27,113 | |||||
Shared Based Compensation Maximum Potential Awards | 27,113 |
Equity-Based Compensation Equit
Equity-Based Compensation Equity-Based Compensation - Performance and Market Based RSUs (Details) - Performance and Market-based Restricted Stock Units | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Units | |
Outstanding at beginning of year - shares | shares | 271,305 |
Granted - shares | shares | 72,043 |
Attained by performance - shares | shares | 18,600 |
Vested and released - shares | shares | (72,456) |
Forfeited - shares | shares | (21,700) |
Outstanding at end of year - shares | shares | 267,792 |
Maximum potential units outstanding at June 30, 2016 - shares | shares | 0 |
Weighted Average Grant Date Fair Value | |
Beginning of year - weighted average fair value | $ / shares | $ 18.77 |
Granted - weighted average fair value | $ / shares | 28.75 |
Attained by performance - weighted average fair value | $ / shares | 17.66 |
Vested and released - weighted average fair value | $ / shares | 18.66 |
Forfeited - weighted average fair value | $ / shares | 17.66 |
End of year - weighted average fair value | $ / shares | 21.44 |
Maximum potential units outstanding at June 30, 2016 - weighted average fair value | $ / shares | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Liability Measured at Fair Value on a Recurring Basis (Details) - Designated As Hedging - Cash Flow Hedge - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest rate swap | |||
Recurring financial liability that was measured at carrying value | |||
Realized gain (loss) on cash flow hedge | $ (170) | $ 0 | |
Derivative Asset | 1,359 | 971 | $ 753 |
Foreign currency hedges | |||
Recurring financial liability that was measured at carrying value | |||
Derivative liability | 742 | $ 601 | |
Realized gain (loss) on cash flow hedge | 97 | 38 | |
Derivative Asset | 76 | ||
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap | |||
Recurring financial liability that was measured at carrying value | |||
Derivative liability | (1,359) | (971) | |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency hedges | |||
Recurring financial liability that was measured at carrying value | |||
Derivative liability | 742 | ||
Derivative Asset | 76 | ||
Recurring | Carrying Value | Interest rate swap | |||
Recurring financial liability that was measured at carrying value | |||
Derivative liability | (1,359) | (971) | |
Recurring | Carrying Value | Foreign currency hedges | |||
Recurring financial liability that was measured at carrying value | |||
Derivative liability | $ 742 | ||
Derivative Asset | $ 76 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Recurring Financial Liability Related to Interest Rate Swaps (Details) - Designated As Hedging - Cash Flow Hedge - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Interest rate swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Cost of Hedge Net of Cash Received | $ 0 | |
Reconciliation of the recurring financial derivatives | ||
Beginning balance, derivative asset | 971 | $ 753 |
Total gains/(losses) for the period: | ||
Included in earnings | (170) | 0 |
Included in other comprehensive income | 558 | 218 |
Ending balance, derivative asset | 1,359 | 971 |
Foreign currency hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Cost of Hedge Net of Cash Received | (21) | (132) |
Reconciliation of the recurring financial derivatives | ||
Beginning balance, derivative liability | 742 | 601 |
Total gains/(losses) for the period: | ||
Included in earnings | 97 | 38 |
Included in other comprehensive income | 742 | (47) |
Ending balance, derivative liability | $ 742 | |
Ending balance, derivative asset | $ 76 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 37.70% | 28.40% | 30.20% | 29.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of effective income taxes rate | ||||
Effective income tax rate | 37.70% | 28.40% | 30.20% | 29.40% |
Accrued for interest and penalties related to uncertain income tax | $ 0 | $ 176,000 | $ 14,000 | $ 352,000 |
U.S. Federal Tax and Jobs Act [Member] | ||||
Income Taxes [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 0 | $ 241 |
Business Combinations - Narrati
Business Combinations - Narratives (Details) - USD ($) $ in Thousands | May 15, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Business Acquisition | |||||
Net cash paid | $ 0 | $ 19,265 | |||
Cost of goods sold | $ 76,208 | $ 69,892 | $ 151,305 | $ 135,822 | |
Noliac A/S | |||||
Business Acquisition | |||||
Net cash paid | $ 19,121 | ||||
Cash acquired in acquisition | 199 | ||||
Acquisition related cost | $ 291 |
Business Combinations - Acquisi
Business Combinations - Acquisition (Details) - USD ($) $ in Thousands | May 15, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition | ||||
Goodwill | $ 71,057 | $ 71,057 | ||
Net cash paid | $ 0 | $ 19,265 | ||
Noliac A/S | ||||
Business Acquisition | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 9,142 | |||
Current assets | 2,836 | |||
Property, plant and equipment | 580 | |||
Other assets | 395 | |||
Goodwill | 9,313 | |||
Fair value of assets acquired | 22,266 | |||
Less fair value of liabilities acquired | (3,145) | |||
Net cash paid | $ 19,121 |